Federal Reserve Reviewing Liquidity Sources at Largest Banks
The Federal Reserve Board (Fed) is examining liquidity sources at some of the largest U.S. banks to improve the agency’s oversight of systemic risk, according to several news articles this week. The Fed’s review includes the mix of short- and long-term liabilities these banks use to fund their holdings of loans and securities. Further, the reviews include access to liquidity sources and backup plans in the event of emergency or special circumstances. While the Fed is currently undertaking these review efforts at the largest banks, the Credit Union National Association (CUNA) will be monitoring these developments to ensure the National Credit Union Administration (NCUA) does not ‘borrow’ requirements developed for the largest banks.